1. CFIT Presentation Presented By: Sumit Nijhawan snijhawan@infogix.com
Automated Information Controls Prepared for: Committee on Finance and Information Technology (CFIT)
Presented By:
Sumit Nijhawan
© 2008 Infogix, Inc.

2. What is a Top Concern for Financial Executives?
CFIT Presentation
What is a Top Concern for Financial Executives?
Integrity of Information
Analytical Information Access
Rising IT Costs
High/Rising SOX Compliance Costs
© 2008 Infogix, Inc.
© 2008 Infogix, Inc.

3. Top Concerns for Financial Executives
CFIT Presentation
Top Concerns for Financial Executives
Integrity of Information
Analytical Information Access
Rising IT Costs
High/Rising SOX Compliance Costs
Source: Technology Issues for Financial Executives
2008 Annual Survey Report
© 2008 Infogix, Inc.
© 2008 Infogix, Inc.

4. Infogix Eliminates Information Errors
CFIT Presentation
Infogix Eliminates Information Errors
Information errors is a pervasive and universal phenomenon especially in financial processes.
Cost and impact of information errors can be small or catastrophic.
Infogix is the company that has the expertise and technology to solve this problem.
© 2008 Infogix, Inc.
© 2008 Infogix, Inc.

5. Integrated Application
CFIT Presentation
© 2008 Infogix, Inc. 5
Managing Errors and Complexity
Integrated Application
No Controls
Manual Controls
Spreadsheets
Programming Logic
© 2008 Infogix, Inc.
© 2008 Infogix, Inc.

6. Infogix helps you eliminate information errors with
CFIT Presentation
What We Do
Infogix helps you eliminate information errors
with
independent, automated, and continuous
Infogix Controls™.
© 2008 Infogix, Inc.
© 2008 Infogix, Inc.

7. Benefits of Infogix Controls
CFIT Presentation
Benefits of Infogix Controls
Reduce Costs
Eliminate duplicate payments
Eliminate SLA penalties
Eliminate billing errors
Reduce Risk
Protect company brand
Avoid litigation
Avoid catastrophic errors
Streamline Compliance
Eliminate reporting errors
Reduce audit time and costs
Increase controls effectiveness
Improve Processes
Eliminate manual controls
Eliminate rework, re-runs
Standardize controls
Infogix Controls help you increase profits. Every dollar of cost that Infogix Controls helps you avoid improves your bottom line.
The cost savings come from elimination of manual information validation activities. Manual controls that are automate free up the manual resources. Reallocate to other opportunities / projects.
When errors happen, they cost money and time to deal with. Rework, re-runs (of statements, invoices, GL, 1099s, W2s, reports, etc.) IT and business fire drills distract people from pursuing business objectives and goals.
Eliminate the errors and get things done right the first time and save money and time. Eliminate the cost of duplicate payments, recovery fees, etc. Meet the SLAs that you have agreed to and avoid refunds and penalties. Eliminate billing errors and the costs associated with them. Bill for all of the services that you are providing.
Infogix Controls provide more effective regulatory compliance while driving down audit costs. When independent automated controls are validating 100% of your transactions as they happen instead of people manually validating sample sets of transactions quite some time after they’ve happened, you get more effective compliance. Since the controls provide a fully verifiable audit trail of execution results, you can prove compliance and streamline audits. Further, you can implement Infogix Controls to eliminate errors in compliance related reportings.
Infogix Controls also help you reduce risks. By detecting and eliminating errors as early in the process as possible, you get early notice of error detection and the ability to correct errors before they propagate downstream and do damage. Protect your companies brand from the risks of systemic errors. Avoid the costs of litigation from catastrophic errors.
Infogix Controls improve processes. Simplify and speed processes by automating manual steps and manual validations. Standardize controls across the enterprise, throughout all of your business processes.
Infogix Controls increase profits by reducing costs, ensuring regulatory compliance, reducing risks, and improving processes.
Infogix Controls increase profits.
© 2008 Infogix, Inc.
© 2008 Infogix, Inc.

8. Infogix Controls Can Be Used Throughout Your Enterprise
CFIT Presentation
Infogix Controls Can Be Used Throughout Your Enterprise
General Ledger
Statutory Reporting
SOX and Other Compliance Efforts
Electronic Payments
Accounts Payable
Accounts Receivable
Data Warehouse/BI/CPM
Statement Generation
Claims Processing
Inventory Replenishment
Billing
Payroll
Expense Management
Commissions
Infogix Controls improve information intensive processes.
© 2008 Infogix, Inc.
© 2008 Infogix, Inc.

9. The Infogix Difference
CFIT Presentation
The Infogix Difference
Automated Validate all transactions instead of manual sampling
Independent Validate processes/information independent of controlled systems
Continuous Continuously available controls execute as often as needed
Verifiable Audit trail of control results ensures compliance and speeds audits
Standardized Standardize controls throughout the enterprise
Rule-based Implement and maintain controls without software developers
Non-intrusive Capture controlled information in existing formats and locations
End-to-End Validate information between applications across the enterprise
Automated – once implemented, does the solution automatically check all instances of controlled information/transactions?
Independent – does the implementation of the control system operate independent of the system being controlled? (algorithms, platforms, design, etc) ?
Continuous – does the implemented control system operate continuously ( )? Or must it run at distinct time points either due to its limited architecture or range or applicability?
Verifiable – does the control system produce a set of industry recognizable control and user reports that enable electronically verifiable auditing of control results for all testable information/transactions?
Standardized – can the controls solution be implemented in other processes, systems, departments, throughout the enterprise in a consistent manner thereby driving down costs of ownership and expansion?
Rule-based – does the implemented control system consist of a set of control-specific rules that can be readily interpreted by business analysts?
Non-intrusive – does the implementation of the control system require changes in the system being controlled? Or are source code and/or database changes required?
End-to-end – can the control system test all of the elements of the content, process, and system without authoring additional source code or incurring additional information risk?
---
Additionally…
Data-driven – can control rules be easily authored to consider prior data history without authoring additional computer programs/source code or altering databases?
Tech-agnostic – can the control system reach all applicable computing platforms without authoring additional source code or incurring additional information risk?
App-agnostic – can the control system reach all applicable applications (both COTS and in-house) without authoring additional source code or incurring additional information risk?
© 2008 Infogix, Inc.
© 2008 Infogix, Inc.

10. Gartner Report Cool Vendors, 2008: Innovations from Around the World
CFIT Presentation
Gartner Report
Cool Vendors, 2008: Innovations from Around the World
Infogix is “cool” because our solution
“focuses primarily on data in flight”
“can be implemented in an unobtrusive manner without changes to existing applications and databases”
“enables auditing of data consistency in an independent manner”
© 2008 Infogix, Inc.
© 2008 Infogix, Inc.

11. How do Infogix Controls Work?
CFIT Presentation
How do Infogix Controls Work?
© 2008 Infogix, Inc.

12. Business processes are complex.
CFIT Presentation
Business processes are complex.
© 2008 Infogix, Inc.

13. CFIT Presentation
The potential for information errors exists throughout the business process.
© 2008 Infogix, Inc.

14. Infogix Controls monitor, detect, and prevent information errors.
CFIT Presentation
Infogix Controls monitor, detect, and prevent information errors.
© 2008 Infogix, Inc.

15. Infogix Controls are deployed as control points.
CFIT Presentation
Infogix Controls are deployed as control points.
Process A
Process B
Process C
Discuss about different applications for step 1 and step 2 and step 3
Control Point 1
Control Point 2
© 2008 Infogix, Inc.

16. At each control point, the Infogix Control:
CFIT Presentation
At each control point, the Infogix Control:
captures information,
compares the information,
controls the process, and
communicates the control results.
Control Point
Discuss about different applications for step 1 and step 2 and step 3
Process
Process
© 2008 Infogix, Inc.

17. There are four steps to setting up an Infogix Control.
CFIT Presentation
There are four steps to setting up an Infogix Control.
© 2008 Infogix, Inc.

18. CFIT Presentation 1
First, you define the layout of the information to be captured at the control point.
To do that, you specify the format of the source information, how it will be accessed, and where it is located.
© 2008 Infogix, Inc.

19. Infogix Controls can capture data from a wide variety of sources.
CFIT Presentation
Infogix Controls can capture data from a wide variety of sources.
financial and operational reports
application files and proprietary formats
databases
XML
Spreadsheets
EDI
web
Steve – we need better icons for the ones that say “1.2.3” which will confuse finance audiences into thinking “Lotus 123” which they no longer use. I have some ideas. The XML icon needs to be less fuzzy. Create an EDI one that looks like the XML one, but vary the orange color. Create one for the web as well…. use the internet explorer icon for this one.
© 2008 Infogix, Inc.

20. CFIT Presentation
You specify the fields of information from your sources that the Infogix Control will capture.
Layout Fields
Layout
© 2008 Infogix, Inc.

21. Infogix Controls may capture information from multiple sources.
CFIT Presentation
Infogix Controls may capture information from multiple sources.
Layout Fields
Layout
© 2008 Infogix, Inc.

22. CFIT Presentation
The layout definition also specifies the control fields into which the source information is captured.
Layout Fields
Control Fields
© 2008 Infogix, Inc.

23. CFIT Presentation 2
Second, you define the comparison rules the Infogix Control will use to compare the control fields. The rules can be simple or complex.
© 2008 Infogix, Inc.

24. CFIT Presentation 3
Third, you define control actions to be performed based on the result of the comparisons.
Stop further processing of this transaction.
Execute reconciliation controls.
Record audit trail into control report.
For example, you might want to halt further processing or to execute other Infogix Controls.
© 2008 Infogix, Inc.

25. CFIT Presentation 4
Finally, you define what and how you want to communicate about the results of the execution of the Infogix Control.
For example, you may want to send alerts to specific people via pager, , exception report, Infogix Inbox, etc.
© 2008 Infogix, Inc.

26. Let’s Look at Examples. CFIT Presentation 2008-09-25
© 2008 Infogix, Inc.

27. CFIT Presentation
Infogix Controls can automate, simplify and streamline daily or month-end financial accounting practices. Let’s look at a simplified General Ledger Application example.
© 2008 Infogix, Inc.

28. CFIT Presentation
On a daily basis, all Branch Teller Journal activity is received and tabulated based on Branch location in different regions of the country.
On that same day, internal applications augment and centralize the information into Sub Ledgers prior to updating the General Ledger
© 2008 Infogix, Inc.

29. CFIT Presentation
Infogix Controls can automatically verify that transactions in the Teller Journal application are received and processed by the Sub Ledger and accurately posted to the General Ledger before any month-end information is generated.
Teller Journal
Sub Ledger
General Ledger
© 2008 Infogix, Inc.

30. Teller Journal Activity
CFIT Presentation
Teller Journal Activity
Excel or XML File Layout
Layout Fields
© 2008 Infogix, Inc.

31. Sub Ledger Process Sub Ledger Transaction Capture Layout Fields
CFIT Presentation
Sub Ledger Process
Sub Ledger Transaction Capture
Layout Fields
Sub Ledger Summary Capture
Layout Fields
© 2008 Infogix, Inc.

32. General Ledger Activity
CFIT Presentation
General Ledger Activity
Excel or Database Layout
Layout Fields
© 2008 Infogix, Inc.

33. Teller Activity Posting Process Control
CFIT Presentation
Teller Activity Posting Process Control
Results
Teller Activity Detail
Control Point 1
Sub Ledger Detail & Summary
Control Point 2
Control Point 3
General Ledger Summary Postings
© 2008 Infogix, Inc.

34. What about more complex processes…..
CFIT Presentation
What about more complex processes…..
© 2008 Infogix, Inc.

35. General Ledger Controls
CFIT Presentation
© 2008 Infogix, Inc. 35
General Ledger Controls
Source
Systems
Sub
Ledgers
General
Ledger
Trial
Balance
LOB 1
Corporate GL
Source
Systems
Sub
Ledgers
LOB 2
General
Ledger
Trial
Balance
Infogix Controls
Balance Corporate General Ledger
Reconcile all GL Accounts to Activity Within Accounts
Reconcile General Ledger to Sub Ledgers
Reconcile Trial Balance to GL
Manage all Outstanding Inventory Items
Manage Production of Posting Entries
© 2008 Infogix, Inc.
© 2008 Infogix, Inc.

36. Loan Processing Controls
CFIT Presentation
© 2008 Infogix, Inc. 36
Loan Processing Controls
Vendor
Charges
Payments and
Refunds
Origination
General
Ledger
Calculated
Balance
Loan
Data
Reference Sources
Fee Tables
Credit Cards
Mortgage
Processing
Infogix Controls
Validate Payments and Refunds
Validate Vendor Charges
Reconcile GL Posting of Loans
Validate loans
Reconcile Fees to Reference Sources
© 2008 Infogix, Inc.
© 2008 Infogix, Inc.

37. Inventory Controls Receiving Inventory MRP Distribution Accounts
CFIT Presentation
© 2008 Infogix, Inc. 37
Inventory Controls
Receiving
Inventory
MRP
Distribution
Accounts
Payable
Cost Accounting
Billing
General Ledger
Infogix Controls
Account for all units from receiving to distribution
Account for all costs posted to financial systems
© 2008 Infogix, Inc.
© 2008 Infogix, Inc.

38. Complex Processes CFIT Presentation 2008-09-25 © 2008 Infogix, Inc.

39. Infogix Controls Platform
CFIT Presentation
Infogix Controls Platform
Infogix Controls are Independent Automated Information Controls that are deployed to continuously verify, balance, reconcile, and monitor information flowing through a business process, application, or exchange. They can compare information against other diverse information sources or against prior recorded information. Control results can be used to generate alerts, halt erroneous transaction flows or error propagation, and generate reports.
What Does an Infogix Control Do? An Infogix Control is always working to ensure that your information and the processes and systems that handle it are functioning as designed.
Capture - Intercept or extract data from relevant sources: files, databases, reports, spreadsheets, messages, transactions, etc.
Compare - Apply your user-defined business rules to detect information or process errors.
Control - Interrupt or alter processes before incorrect information propagates further.
Communicate - Provide alerts, notifications, reports and audit trails.
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The Infogix Controls Platform is a comprehensive portfolio of automated information controls capabilities, including capabilities for information validation, exception management and a dashboard to view enterprise-wide controls deployment, operation and results. The information validation capabilities are:
Verify: Validation of information content and format, detection of duplicates, validation of external files and checking of cross-references. Examples: Avoid duplicate entries into a system such as an inventory or claims system.
Balance: Validation that the summary-level totals from two or more sources match either exactly or within a tolerance. The sources of information may be reports, files, databases, applications or processing runs including daily, weekly, monthly etc. Examples: Feeds to a GL system from various accounting applications or payroll.
Reconcile: Matching and validation of detail-level information from multiple sources. Examples: Validating information in a data warehouse that was fed by multiple systems.
Track: Validation of process integrity indicators such as process sequence, process delay, transaction path and transaction arrival time. Examples: Track a payment throughout the payment process
The Exception Management capability includes the ability to route errors and exceptions from any of the validations to appropriate research and resolution functions and to track and report the status and disposition of those exceptions. The Controls Monitoring capability includes the ability to view the definition, status, results and history of all controls, by appropriately authorized personnel.
Easy and Non-intrusive implementation leads to business benefits in several weeks.
© 2008 Infogix, Inc.
© 2008 Infogix, Inc.

40. Infogix Eliminates Information Errors
CFIT Presentation
Infogix Eliminates Information Errors
Information errors is a pervasive and universal phenomenon especially in financial processes.
Cost and impact of information errors can be small or catastrophic.
Infogix is the company that has the expertise and technology to solve this problem.
© 2008 Infogix, Inc.
© 2008 Infogix, Inc.

41. The Infogix Difference
CFIT Presentation
The Infogix Difference
Automated Validate all transactions instead of manual sampling
Independent Validate processes/information independent of controlled systems
Continuous Continuously available controls execute as often as needed
Verifiable Audit trail of control results ensures compliance and speeds audits
Standardized Standardize controls throughout the enterprise
Rule-based Implement and maintain controls without software developers
Non-intrusive Capture controlled information in existing formats and locations
End-to-End Validate information between applications across the enterprise
Automated – once implemented, does the solution automatically check all instances of controlled information/transactions?
Independent – does the implementation of the control system operate independent of the system being controlled? (algorithms, platforms, design, etc) ?
Continuous – does the implemented control system operate continuously ( )? Or must it run at distinct time points either due to its limited architecture or range or applicability?
Verifiable – does the control system produce a set of industry recognizable control and user reports that enable electronically verifiable auditing of control results for all testable information/transactions?
Standardized – can the controls solution be implemented in other processes, systems, departments, throughout the enterprise in a consistent manner thereby driving down costs of ownership and expansion?
Rule-based – does the implemented control system consist of a set of control-specific rules that can be readily interpreted by business analysts?
Non-intrusive – does the implementation of the control system require changes in the system being controlled? Or are source code and/or database changes required?
End-to-end – can the control system test all of the elements of the content, process, and system without authoring additional source code or incurring additional information risk?
---
Additionally…
Data-driven – can control rules be easily authored to consider prior data history without authoring additional computer programs/source code or altering databases?
Tech-agnostic – can the control system reach all applicable computing platforms without authoring additional source code or incurring additional information risk?
App-agnostic – can the control system reach all applicable applications (both COTS and in-house) without authoring additional source code or incurring additional information risk?
© 2008 Infogix, Inc.
© 2008 Infogix, Inc.

42. Discussion CFIT Presentation 2008-09-25 © 2008 Infogix, Inc.42
Discussion
© 2008 Infogix, Inc.
Infogix, the Infogix checkmark logo, Information With Confidence and Information Integrity are registered trademarks of Infogix, Inc. Other designated phrases and product names used here are the property of their respective owners. For a list of Infogix trademarks, visit
© 2008 Infogix, Inc.